We all know that rents on Philadelphia apartments are going up and demand for units is the lowest it has been in some time. But what can we expect from the future of renting in Philadelphia? Lots of new apartment units are being constructed right now, and even more are on the drawing board.
According to the experts who analyze rental data and make forecasts based on the information they collect, if you are renting in Philadelphia, expect your rent to keep going up. The increases will likely be gradual but still noticeable.
Currently, the average rent in Philadelphia is about $1,046 a month. You can get a pretty good apartment in a decent neighborhood for between $1200 to $1600.
The expected increases are going to be about 3.2 percent through the end of 2012, so going into next year, your “average” Philadelphia apartment will be closer to $1077.
Next year, the average rent may raise even further as increasing numbers of new units come onto the market. New apartments are typically listed at higher rental rates, and can push the overall averages up when they are all added to the available inventory at once.
The hottest market for renting in Philadelphia remains Center City, according to both data-based and anecdotal evidence. I know it’s where all my friends who are looking for new apartments are gravitating. They love the idea of a carless lifestyle and being close to cool events and entertainment. As a result, Center City has a lower vacancy rate for apartments than anywhere else in Philly.
How will you handle raising rents and low apartment vacancy rates? Going to move or planning to stay put?